Summary of this article
A special pre-open session will be conducted for HUL shares on December 5, from 9:00 AM to 10:00 AM
From December 5, Kwality Wall’s will temporarily be included in Nifty 50 with a dummy symbol ‘DUMMYHDLVR’
After the record date, Kwality Wall’s shares will be credited to the demat accounts of eligible shareholders
HUL Demerger: Hindustan Unilever Ltd (HUL) will officially demerge its ice-cream business, Kwality Wall’s (India) Ltd, on December 1, 2025. The National Company Law Tribunal (NCLT) approved the demerger scheme in October 2025.
Post-demerger, Kwality Wall’s (India) will operate as a standalone FMCG company. The company owns popular ice cream brands such as Cornetto, Magnum, Feast, and Creamy Delight. In an exchange filing, HUL’s management said the demerger is aimed at providing the ice-cream business with “greater strategic focus and flexibility suited to its distinctive model.”
Here are the key details HUL shareholders need to know.
HUL Demerger: Key Details
Record Date: HUL has set December 5 as the record date for determining shareholders eligible to receive shares of the new Kwality Wall’s (India). HUL shares will trade ex-date for the demerger on the same day, in line with the T+1 settlement cycle.
Investors holding HUL shares on the record date will automatically qualify for Kwality Wall’s (India) shares.
Entitlement Ratio: The company has set the entitlement ratio as 1:1. This means all eligible HUL shareholders will receive one share of Kwality Wall’s (India) of face value Re 1, for every HUL share held.
Rationale Behind Demerger: HUL explained that Kwality Wall's (India) runs on a separate supply chain, has a distinct capital requirement and faces a different competitive landscape. "Separating the ice-cream unit enables sharper strategic focus and more effective capital allocation," HUL noted in one of its exchange filings.
Kwality Wall’s Board Members: Kwality Wall’s (India) last week made several key appointments to its board ahead of its demerger. The company named seven directors in total, including one non-executive director, two executive directors, and four independent directors.
Chitrank Goel has been appointed as Deputy Managing Director and Executive Director, while Ritesh Tiwari will join as a non-executive director. Prashant Premrajka will take charge as Chief Financial Officer and join the board as an Executive Director. Independent directors joining the board include Ravi Pisharody and Madhavan Hariharan.
HUL Demerger: Special Pre-Open Session On December 5
The NSE via its circular dated November 27 a Special Pre-Open Session (SPOS) will be conducted for HUL shares on December 5, 2025, from 9:00 AM to 10:00 AM. This one-hour session is meant to help the market to derive the fair value of Kwality Wall’s. Normal trading in HUL shares will commence from 10:00 AM onward.
The one-hour session will follow a call-auction mechanism where buy and sell orders are collected first and matched later to determine an equilibrium price.
All unmatched orders within the dynamic price band of the discovered price “shall be moved to normal trading session at their limit price” once the market opens. If the exchange cannot determine an equilibrium price, “all orders shall be cancelled, and the stock shall continue to trade in call auction mechanism until price is discovered.”
The special session will also determine the base price for block deals. The NSE stated that HUL “shall be eligible only in second session of block deal window… subject to successful price discovery. VWAP price shall be the base price for second block session.”
Volume Weighted Average Price (VWAP) is the average price at which a stock trades during the day, weighted by the volume traded at each price point.
HUL Demerger: Kwality Wall’s To Be Included In Nifty 50 Temporarily
From December 5, Kwality Wall’s will temporarily be included in the Nifty 50 index as the 51st stock with a dummy symbol ‘DUMMYHDLVR’ at zero price. As per index rules, if the demerged stock does not hit its upper or lower price band within three days of listing, it will be removed from the index. If the stock reaches the price band, the removal will be deferred by another three days.
HUL Demerger: Kwality Wall’s Share Listing Date
After the record date, Kwality Wall’s shares will be credited to the demat accounts of eligible shareholders but will remain in a frozen state until the company receives approval from NSE and BSE to list the shares. The official listing date will be announced in due course.
Kwality Wall’s (India) Ltd is expected to allot shares on or before December 29, 2025, according to an exchange filing.
